LAW ON OBLIGATION AND CONTRACTS

Hidilyn Diaz, an Olympic Gold Medallist, undersigned a contract with Olympian, Inc. for a period of 3 years to play exclusively for the latter. However, even before the Olympic season could open, Olim Pix, Inc. offered her a more handsome deal. Diaz, thus, accepted the offer and transferred to Olim Pix, Inc. Infuriated by the acts of Diaz, Olympic, Inc. instituted a civil action against Diaz for breach of contract. The Defendants argued that the stipulation in the contract prohibiting Diaz to play exclusively for Olympic, Inc. alone is void. As such, the contract is unenforceable because it constitutes an undue interference upon Diaz' right to freely enter into contracts as well violation against her freedom to play and enjoy her chosen sport. a. Is Diaz duty-bound to observe the stipulations of the contract which she has entered into with Olympic or can she disregard it? b. Is Diaz liable for breach of contract? c. What about Olim Pix, Inc., is it liable to Olympic, Inc.?